Intel updated the market with financial targets through 2026.
The company forecasts negative cash flows in 2022 and not returning to positive cash flows until 2025.
The chip giant is falling further behind the aggressive capex spending of TSM.
The stock remains untouchable as the company heads down a scary path of heavy spending with no guaranteed positive returns.
https://seekingalpha.com/article/4488644-intel-stock-untouchable-heavy-spending
4 replies (most recent on top)
Guys, Calm down. This is planned. Proceeds from Mobileye IPO will more than make up the difference.
Gross margin of 52% of 74bln of revenue is 38.5 bln gross profit. You take out 6 bln SG&A expenses (this is about what they have been spending the last couple of years), 26.5 billion of capital expenditures and 15 billion of R&D you end up burning 9 billion dollars of cash for the year. If they actually pay their dividend, that will be another 5.5 billion for a total of about 14.5 billion dollars of cash used up. That is a very risky situation to be in. One hears about startups burning cash but not in the billions.
I had posted this a few months back after intels Nov earnings call and sad to see the trend as expected. What does Pat think? He is Batman he is not even Patman 😂😂😂😂
OMG the only way to conserve cash, layoffs baby.
Better be part of an important strategic group!
Got a new CFO who says he will be looking, chop chop, you are fired
Intel isnt cheap but still death until 2025 just like AT&T they got to cut dividends at some point.